Life Insurance for mid-50s

[Anonymous]

Anonymous wrote:My husband and I started working with an hourly-based financial advisor outside of our area with an interest in getting help with cash flow issues. We have spent the first few months working with this advisor on getting new life insurance policies and the policies this advisor are recommending for us are so expensive. We went to the advisor with a goal of getting help with our cash flow and now we are unexpectedly down a lot of money on these new life insurance policies (if we move forward with the recommended policies).

Are expensive term life insurance policies typical for those in their mid-50s?

Oof, OP, you fell for it hook, line, and sinker. You’re paying the financial advisor hourly for advice and a plan, not products. Likewise, life insurance is typically sold, rarely is it bought.

[Anonymous]

OP, this is how it should work:

Financial planner reviews your entire financial picture.
They input your numbers into some type of life insurance calculator.
They show you the results. There should be a high and a low number for the amount of term.

You talk it over with your planner and family and decide what is good for you.
The planner coordinates with a insurance firm that can get prices from a large number of firms. No compensation between the 2 firms.

The firm shops your health details to firms that will be the most cost effective. (They do not work with trash firms)

There are other things a planner can do to get your rates lower, you need to pay for this knowledge or look it up on your own.

A real financial planner can save you thousands/hundreds of thousands of $.

There are some good ones to be found here > https://www.feeonlynetwork.com/

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I definitely wouldn’t get a 20 year term policy in your 50s. Life insurance gets very expensive past 65 or so. You could maybe get a 10 year policy if you really need it but it is an open question whether you need it all.

Would be careful about advice from this guy in general based on this recc.

+1. With a few exceptions, it’s unlikely you need a new life insurance policy in your mid-50s, and certainly not a 20 year policy.

Whether term or whole, many financial advisors get commissions for pushing unnecessary products, particularly in the life insurance space. That’s why someone else mentioned asking him point blank if he is a fiduciary (and why the only person defending this is another salesperson).

True. I actually have a small universal life insurance policy that I took out in my 20s when it was cheap. I’m in my 40s and I’d never take out a new life insurance policy at my age.

A small universal life insurance policy in your 20s was a complete ripoff. You could have put it into S&P — do the math

[Anonymous]

Anonymous wrote:

Anonymous wrote:We have an advisor and he suggested getting term life back when we were mid 30s, and had young kids and a mortgage. However, he just suggested we do it, and didn't point us to any vendors. I chose a vendor on my own, so he didn't get any kickback from it, that's for sure.

20year term life if you're in mid-50s is going to be super high. The avg life expectancy in the US is 76 years, so there's a high chance the insurer may have to pay out before the term expires.

If you really need it, get 10 year term instead.

Counterpoint: there are some advantages to getting a longer term than you think you'll need. Things don't always work out the way you think they will. My in-laws just purchased a term life insurance policy in their mid-60s. They planned on being retired by now but FIL was laid off at 55, couldn't get rehired at anything close to the same pay, and is now self-employed earning around $40K - he'll need to work until his early-mid 70s. MIL could survive if he passed prematurely but at a significantly lower standard of living, so they got a term policy.

Also, you can't just plan on getting the shortest term and then buying a new policy if needed. Because coverage and pricing are based on your health, developing any serious medical conditions could make life insurance unavailable later on (or prohibitively expensive). I got a 30-year term at 38 despite the fact that I don't think I'll need it more than 20 years. If that's the case, I'll just drop it early. But I still have memories of seeing news stories following the 2008 crash of people who thought retirement was imminent yet ended up having to work a lot longer.

They were scammed.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My husband and I started working with an hourly-based financial advisor outside of our area with an interest in getting help with cash flow issues. We have spent the first few months working with this advisor on getting new life insurance policies and the policies this advisor are recommending for us are so expensive. We went to the advisor with a goal of getting help with our cash flow and now we are unexpectedly down a lot of money on these new life insurance policies (if we move forward with the recommended policies).

Are expensive term life insurance policies typical for those in their mid-50s?

Oof, OP, you fell for it hook, line, and sinker. You’re paying the financial advisor hourly for advice and a plan, not products. Likewise, life insurance is typically sold, rarely is it bought.

I’m honestly a little confused. If they are charging hourly isn’t that a fee only financial advisor? Rather than commission?

[Anonymous]

Anonymous wrote:OP, this is how it should work:

Financial planner reviews your entire financial picture.
They input your numbers into some type of life insurance calculator.
They show you the results. There should be a high and a low number for the amount of term.

You talk it over with your planner and family and decide what is good for you.
The planner coordinates with a insurance firm that can get prices from a large number of firms. No compensation between the 2 firms.

The firm shops your health details to firms that will be the most cost effective. (They do not work with trash firms)

There are other things a planner can do to get your rates lower, you need to pay for this knowledge or look it up on your own.

A real financial planner can save you thousands/hundreds of thousands of $.

There are some good ones to be found here > https://www.feeonlynetwork.com/

> "Never go to a financial advisor that charges percentage of assets under management as their fee - that's highway robbery!"
> OP engages the services of a fee-only financial planner.
> "OK, but never buy whole or universal life, only term - whole life is a scam!"
> OP buys a term life policy.
> "OMG, you hired a fee-only planner and bought term insurance - but did both at the same place?!"

You twits are insufferable and a clear reminder to any business owner that some customers are misanthropic cheapskates and are to be avoided at all costs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My husband and I started working with an hourly-based financial advisor outside of our area with an interest in getting help with cash flow issues. We have spent the first few months working with this advisor on getting new life insurance policies and the policies this advisor are recommending for us are so expensive. We went to the advisor with a goal of getting help with our cash flow and now we are unexpectedly down a lot of money on these new life insurance policies (if we move forward with the recommended policies).

Are expensive term life insurance policies typical for those in their mid-50s?

Oof, OP, you fell for it hook, line, and sinker. You’re paying the financial advisor hourly for advice and a plan, not products. Likewise, life insurance is typically sold, rarely is it bought.

I’m honestly a little confused. If they are charging hourly isn’t that a fee only financial advisor? Rather than commission?

Any advisor can charge how they want.

[Anonymous]

Anonymous wrote:20 year level term is 20 year level term. It does not get more expensive over the 20 years, counter to what 21:53 says.

The real question is do you need it?

What expenses do you need to cover?

You are nuts if you think 20 year level term bought in your 30s costs the same as 20 year level term bought in your 50s

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, this is how it should work:

Financial planner reviews your entire financial picture.
They input your numbers into some type of life insurance calculator.
They show you the results. There should be a high and a low number for the amount of term.

You talk it over with your planner and family and decide what is good for you.
The planner coordinates with a insurance firm that can get prices from a large number of firms. No compensation between the 2 firms.

The firm shops your health details to firms that will be the most cost effective. (They do not work with trash firms)

There are other things a planner can do to get your rates lower, you need to pay for this knowledge or look it up on your own.

A real financial planner can save you thousands/hundreds of thousands of $.

There are some good ones to be found here > https://www.feeonlynetwork.com/

> "Never go to a financial advisor that charges percentage of assets under management as their fee - that's highway robbery!"
> OP engages the services of a fee-only financial planner.
> "OK, but never buy whole or universal life, only term - whole life is a scam!"
> OP buys a term life policy.
> "OMG, you hired a fee-only planner and bought term insurance - but did both at the same place?!"

You twits are insufferable and a clear reminder to any business owner that some customers are misanthropic cheapskates and are to be avoided at all costs.

Spotted the two-bit financial advisor in the thread. Sorry your industry is so scammy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My husband and I started working with an hourly-based financial advisor outside of our area with an interest in getting help with cash flow issues. We have spent the first few months working with this advisor on getting new life insurance policies and the policies this advisor are recommending for us are so expensive. We went to the advisor with a goal of getting help with our cash flow and now we are unexpectedly down a lot of money on these new life insurance policies (if we move forward with the recommended policies).

Are expensive term life insurance policies typical for those in their mid-50s?

Oof, OP, you fell for it hook, line, and sinker. You’re paying the financial advisor hourly for advice and a plan, not products. Likewise, life insurance is typically sold, rarely is it bought.

I’m honestly a little confused. If they are charging hourly isn’t that a fee only financial advisor? Rather than commission?

Using a fee-only advisor at an hourly rate is definitely preferable over the commission/AUM fee structure. But you’re really not supposed to buy investment and/or insurance products from them. I’ve noticed many “advisors” that are actually thinly-veiled salesmen seem to be quite common nowadays.

You should be formulating an overall plan with your financial advisor, but then shop around for the products to complete your financial goals elsewhere. If your advisor is charging you an hourly fee but also trying to sell you life insurance in the same meeting, then it’s very likely that the plan they came up with wasn’t that good from the get-go.

[Anonymous]

We do not know enough to know. Are there kids -- are there special needs? Is there no savings?

[Anonymous]

Anonymous wrote:We have an advisor and he suggested getting term life back when we were mid 30s, and had young kids and a mortgage. However, he just suggested we do it, and didn't point us to any vendors. I chose a vendor on my own, so he didn't get any kickback from it, that's for sure.

20year term life if you're in mid-50s is going to be super high. The avg life expectancy in the US is 76 years, so there's a high chance the insurer may have to pay out before the term expires.

If you really need it, get 10 year term instead.

Yes and no on the 76. That is the average for all people. But somone already in their 50s can expect to live longer than 76. Also race and income matter. White, UMC will push that up. Also if they are ok after the medical exam in their 50s -- you would expect a much older. A white, UMC, already in 50s with no health issues would be expected by an insurance company to live past mid-80s. Some might, some might not but that is how the numbers would run.

[Anonymous]

Anonymous wrote:

Anonymous wrote:20 year level term is 20 year level term. It does not get more expensive over the 20 years, counter to what 21:53 says.

The real question is do you need it?

What expenses do you need to cover?

You are nuts if you think 20 year level term bought in your 30s costs the same as 20 year level term bought in your 50s

That's true, but the premiums you pay over the course of a 20-year term won't change as you age, which is all the PP is saying.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:20 year level term is 20 year level term. It does not get more expensive over the 20 years, counter to what 21:53 says.

The real question is do you need it?

What expenses do you need to cover?

You are nuts if you think 20 year level term bought in your 30s costs the same as 20 year level term bought in your 50s

That's true, but the premiums you pay over the course of a 20-year term won't change as you age, which is all the PP is saying.

True but they will be INSANE expensive.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have an advisor and he suggested getting term life back when we were mid 30s, and had young kids and a mortgage. However, he just suggested we do it, and didn't point us to any vendors. I chose a vendor on my own, so he didn't get any kickback from it, that's for sure.

20year term life if you're in mid-50s is going to be super high. The avg life expectancy in the US is 76 years, so there's a high chance the insurer may have to pay out before the term expires.

If you really need it, get 10 year term instead.

Counterpoint: there are some advantages to getting a longer term than you think you'll need. Things don't always work out the way you think they will. My in-laws just purchased a term life insurance policy in their mid-60s. They planned on being retired by now but FIL was laid off at 55, couldn't get rehired at anything close to the same pay, and is now self-employed earning around $40K - he'll need to work until his early-mid 70s. MIL could survive if he passed prematurely but at a significantly lower standard of living, so they got a term policy.

Also, you can't just plan on getting the shortest term and then buying a new policy if needed. Because coverage and pricing are based on your health, developing any serious medical conditions could make life insurance unavailable later on (or prohibitively expensive). I got a 30-year term at 38 despite the fact that I don't think I'll need it more than 20 years. If that's the case, I'll just drop it early. But I still have memories of seeing news stories following the 2008 crash of people who thought retirement was imminent yet ended up having to work a lot longer.

They were scammed.

Uh, no, they weren't scammed - they actually went to one of the online broker places where you speak to an advisor for all of 20 minutes for them to gather your health information and give you a quote. After that, it was all admin staff. They had already decided beforehand how much coverage they needed and for how long.

Apparently, no one here believes it but people need and buy life insurance well into their 60s.